Tyre Industry Leaders Respond to Union Budget 2026-2027 Announcements

Key Highlights

• Union Budget 2026-2027 focuses on infrastructure, manufacturing, and capital expenditure
• Tyre industry leaders expect increased demand due to expanded logistics and vehicle utilisation
• Rs 12 lakh crore allocated for infrastructure with fiscal consolidation at 4.3 per cent
• Support for electronic components and clean energy value chains boosts EV and advanced manufacturing
• Policy stability and skilling initiatives seen as key for long-term industry growth

Industry Leaders Welcome Budget Initiatives

Arnab Banerjee, Managing Director and CEO of CEAT, stated that the budget lays a strong foundation for growth in India's mobility and manufacturing sectors. He highlighted the continued emphasis on infrastructure development and the expansion of freight and logistics networks. Banerjee noted that these measures would increase vehicle utilisation on roads and worksites, directly driving demand for tyres in both commercial and passenger segments.

He also pointed out that the government's focus on developing Tier II and Tier III cities will broaden mobility needs beyond metropolitan areas. This expansion is expected to create a durable demand environment for the automotive and tyre industries. Banerjee further emphasised the importance of education infrastructure and skilling initiatives, including efforts to encourage more women to participate in technical and professional roles. These steps, he said, will help build a diverse and future-ready manufacturing workforce.

Budget Supports Manufacturing and Exports

Raghupati Singhania, Chairman and Managing Director of JK Tyre & Industries, observed that the budget reinforces India's commitment to manufacturing-led growth. He cited the allocation of over Rs 12 lakh crore for infrastructure and the fiscal consolidation target of 4.3% as signs of a balanced approach between growth and economic stability. Singhania also welcomed enhanced support for the Self-Reliant India Fund, which will strengthen the manufacturing and MSME ecosystem.

He explained that sustained investments in infrastructure and logistics would improve cost efficiencies and support demand for automotive and tyre products. Singhania also highlighted the government's focus on tourism and workforce skilling as important for job creation. He noted that policy stability, ease of doing business, and technology adoption are essential for attracting investment and scaling exports in the sector.

Focus on Technology and Localisation

Harinder Singh, Managing Director and CEO of Yokohama India, stressed the budget's focus on manufacturing depth, infrastructure expansion, and clean energy value chains. He pointed to enhanced support for electronic components, battery storage, lithium-ion cells, and critical minerals as providing long-term policy visibility for electric vehicle platform localisation and advanced manufacturing.

Singh said that the sustained capital expenditure of Rs 12.2 lakh crore and the expansion of highways, freight corridors, and logistics networks would improve supply chain resilience and market reach. He also mentioned that customs duty rationalisation and exemptions on select capital goods would lower costs for high-technology manufacturing investments. Singh concluded that these measures reinforce confidence in expanding domestic production, localisation, and next-generation manufacturing in India.